First time filer with questions re: May college grad with scholarship greater than tuition, new W-2, and how to file

T4Tax · Apr 3, 2023 12:57:58 PM

My daughter is filing her own tax return for the first time, and we have questions re: a couple of areas. My husband and I qualify and are claiming her as a dependent on our 2022 tax return. She was a full time college student, living at home, graduated in May, then moved out of state for a job in late July. She has a W-2 to enter from her new employer. I know that she has to answer "yes" to the question "can someone else claim you as a dependent" since we can and are claiming her. Regarding education, she has a 1098-T that shows a higher amount in Box 5 Scholarships ($7,500) than Box 1 ($4,200). Book expenses were under $200, but were paid by us the parents. On her tax return, does she go through the Education section and input the 1098-T amounts? There aren't any expenses to claim since the scholarship is higher. Or how does she enter the excess scholarship on TurboTax? My husband and I use TurboTax download on a laptop to do our taxes. Is it recommended that our daughter do the same and sign up for her own TurboTax/Intuit account? Does it matter who files their taxes first...parents or daughter?